BP Chemicals v. Formosa Chemical & Fibre Corp.
United States Court of Appeals for the Third Circuit
229 F.3d 254 (2000)

- Written by Rich Walter, JD
Facts
Both BP Chemicals Ltd. (BP) (plaintiff), a British company, and Joseph Oat Corporation (defendant), a Pennsylvania company, did business in New Jersey and had significant business ties with Taiwan. Formosa Chemical & Fibre Corporation (Formosa Chemical) (defendant) was a Taiwanese subsidiary of another Taiwanese company, Formosa Plastics Group (Formosa Plastics). Formosa Chemical sought foreign vendors who could fabricate equipment abroad and deliver the equipment to Taiwan, where Formosa Chemical would install the equipment at its plant. Formosa Chemical compiled bid packages containing specifications for the work. Formosa Plastics purchasers delivered Formosa Chemical’s bid packages to Taiwan-based agents for several foreign firms, including Joseph Oat, which submitted the winning bid. All of the contract negotiations took place in Taiwan. BP suspected Formosa Chemical of having based its specifications on confidential BP information stolen from BP’s Taiwanese licensee. BP filed a federal suit against Formosa Chemical and Joseph Oat, alleging that they violated New Jersey’s law against trade-secret misappropriation. The key issues were whether the information BP maintained in Taiwan was entitled to trade-secret protection and whether Formosa Chemical wrongfully acquired BP’s information in Taiwan. The district court applied New Jersey law and granted BP’s motion for a preliminary injunction. Formosa Chemical and Joseph Oat appealed to the Third Circuit, where they argued that the district court should have decided BP’s motion pursuant to the laws of Taiwan.
Rule of Law
Issue
Holding and Reasoning (Stapleton, J.)
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